Infrastructure secondaries have emerged as a notable beneficiary of the disrupted macro environment over the past few years, which has significantly impacted managers’ ability to create liquidity for LPs and led to a substantial increase in secondary deal flow.
Read our latest InFocus paper to learn more about how short and long-term trends are creating sustained opportunities in this evolving and dynamic market.
Key takeaways:
- Infrastructure is a resilient asset class, with historically lower volatility and attractive risk-adjusted returns.
- Infrastructure is also an attractive strategic allocation option for investors, that allows them to play offense investing behind global megatrends related to digitization, decarbonization and deglobalization.
- Infrastructure secondaries are an increasingly attractive area that have seen substantial growth in deal flow and investor interest in the current market, driven in large part by a broader liquidity crunch.
- The infrastructure secondaries market also benefits from structural drivers driven primarily by strong primary fundraising over a number of years, which are forecast to support long-term growth in this dynamic segment.
- Infrastructure secondaries offer a shorter-duration access point for investors, with attractive entry valuations that have the potential to drive enhanced returns.